WEBVTT - Evolving Money: Diversifying with Digital Assets (Sponsored Content)

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<v Speaker 1>Since you're a subscriber to this Bloomberg podcast, we thought

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<v Speaker 1>you'd be interested in a sponsored podcast called Evolving Money,

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<v Speaker 1>produced by Coinbase and Bloomberg Media Studios. It explains how

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<v Speaker 1>institutional investors are adopting the world's newest asset class crypto.

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<v Speaker 1>Here's a recent episode.

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<v Speaker 2>I think of Bigcoin almost as like a child growing up.

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<v Speaker 2>And you know how kids go through different phases of life.

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<v Speaker 2>They are the phases where they're good students. Then maybe

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<v Speaker 2>they've become teenagers and they need to rebel. Maybe they

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<v Speaker 2>have a punk phase or a goth phase, and we're

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<v Speaker 2>definitely in one of those transitional phases. Now.

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<v Speaker 3>That's oh Meed Malliken, a Wall Street veteran and an academic,

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<v Speaker 3>trying to answer the simple question what is bitcoin? And

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<v Speaker 3>by that I mean is it a currency? Is it

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<v Speaker 3>a commodity? Is a digital gold?

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<v Speaker 2>Or is it a.

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<v Speaker 3>Teen with a questionable haircut? All right, maybe more important

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<v Speaker 3>than asking what it is actually interested in its behavior.

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<v Speaker 3>What is bitcoin's behavioral profile, because that is what will

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<v Speaker 3>inform how it fits into a diversified portfolio. After we

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<v Speaker 3>hear more from Omete, I'm going to bring in Cosmo

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<v Speaker 3>Xiang for you, general partner and portfolio manager with Pana Capital,

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<v Speaker 3>one of the earliest and most established investment firms focused

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<v Speaker 3>exclusively on blockchain and digital assets. I want to talk

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<v Speaker 3>with him about other ways institutional investors can get exposure

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<v Speaker 3>to crypto beyond purchasing bitcoin. This is Evolving Money and

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<v Speaker 3>I'm your host, Angie Lao. This show is co produced

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<v Speaker 3>by Coinbase, one of the largest cryptocurrency platforms in the world,

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<v Speaker 3>in Bloomberg Media Studios. In this series, we are exploring

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<v Speaker 3>how crypto is being adopted by traditional financial institutions as

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<v Speaker 3>the next logical evolution of the monetary system. Let's return

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<v Speaker 3>to Omeid mallikin a little bit more about him. He

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<v Speaker 3>worked on Wall Street for City Venture as their crypto expert,

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<v Speaker 3>and he's been an adjunct assistant professor at Columbia Business

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<v Speaker 3>School for the past seven years, teaching college students about

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<v Speaker 3>crypto and blockchain. He's the best combination of practical experience

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<v Speaker 3>and an academic perspective available. So my first question for

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<v Speaker 3>him is actually two questions. What is bitcoin and for

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<v Speaker 3>an institutional investor, what role does it play in a portfolio?

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<v Speaker 2>So let's start by trying to define what it is,

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<v Speaker 2>and then we can talk about where it might fit in.

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<v Speaker 2>To me, bitcoin is a hard currency that comes with

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<v Speaker 2>its own universal payment system or method of transaction, if

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<v Speaker 2>you will, And that's a very special thing because we've

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<v Speaker 2>always had hard currencies, like gold is a hard currency,

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<v Speaker 2>so gold is notoriously difficult to store and even harder

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<v Speaker 2>to transact. So when you have something that is as

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<v Speaker 2>scarce as bitcoin is, but then you can zap it

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<v Speaker 2>around the world within minutes to anybody that has access

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<v Speaker 2>to the internet, that is a very unique kind of asset.

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<v Speaker 2>Which is why I actually never liked the digital gold

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<v Speaker 2>narrative that some people ascribe to bitcoin.

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<v Speaker 3>So I want to talk to you about that digital

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<v Speaker 3>gold narrative. How did that actually come about, and why

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<v Speaker 3>is it being questioned now.

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<v Speaker 2>To think about bitcoin as digital gold is to double

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<v Speaker 2>click on the scarcity feature. It's a hard currency or

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<v Speaker 2>hard asset. Nobody can print a lot of it. And

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<v Speaker 2>for the same reason that societies throughout history have wanted

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<v Speaker 2>to have some amount of gold, people would then want

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<v Speaker 2>some amount of bitcoin. More recently, a lot of people

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<v Speaker 2>have really questioned the narrative because going back now to

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<v Speaker 2>the last time we made the all time high, which

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<v Speaker 2>might have been last fall. I think the price of

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<v Speaker 2>gold has really surged and the price of bitcoin has

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<v Speaker 2>gone down. So that's where we are now. But like

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<v Speaker 2>I said earlier, I never loved the digital gold analogy

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<v Speaker 2>because the plumbing aspects of bitcoin to me have always

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<v Speaker 2>been just as important as the just it's an asset

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<v Speaker 2>that has a finite supply argument. And just to put

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<v Speaker 2>this in stark terms, let's go back to when Russia

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<v Speaker 2>invaded Ukraine and a lot of people quickly rallied to

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<v Speaker 2>donate a lot of money to the Ukrainian government to

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<v Speaker 2>help with defense, right, and a lot of people actually

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<v Speaker 2>donate a lot of crypto. And let's say that Ukrainian

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<v Speaker 2>government also had a lot of gold, you a warehouse

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<v Speaker 2>somewhere outside of Kiev. But let's say the war had

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<v Speaker 2>gone really badly and Russia had succeeded in toppling the government,

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<v Speaker 2>and the government would have had to flee and go

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<v Speaker 2>rule in exile. How would they have taken their gold

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<v Speaker 2>with them? No, they probably wouldn't have. But with the

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<v Speaker 2>bigcoin and other crypto assets, all the people in charge

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<v Speaker 2>at the time when people donated crypto to them would

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<v Speaker 2>have to do is take a private key. They could

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<v Speaker 2>have even memorized the private key that would now give

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<v Speaker 2>them billions of dollars in purchasing power, or millions or

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<v Speaker 2>however much they had. This is why I think the

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<v Speaker 2>plumbing argument is in many ways far more interesting when

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<v Speaker 2>it comes to monetary insurance than the hard asset argument

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<v Speaker 2>that gold represents.

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<v Speaker 3>It sounds like one of the big differences between gold

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<v Speaker 3>and bitcoin is that while both are scarce resources, it's

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<v Speaker 3>actually much easier to or in transact with bitcoin. So

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<v Speaker 3>you stated that nation states are increasingly interested in expanding

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<v Speaker 3>their assets in bitcoin and cryptocurrency. Why do you think

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<v Speaker 3>that is?

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<v Speaker 2>When we talk about foreign exchange reserves, we talk about

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<v Speaker 2>literally how countries save money for rainy days, and they

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<v Speaker 2>don't need to save really in their own currency because

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<v Speaker 2>they can print their own currency whenever they want. And

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<v Speaker 2>for many decades now, the US dollar has been the

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<v Speaker 2>reserve currency of the world. Something at its peak, like

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<v Speaker 2>I believe well over sixty percent of all foreign exchange

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<v Speaker 2>reserves were dollars. Having to do with the fact that

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<v Speaker 2>every country does a lot of business with America, having

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<v Speaker 2>to do with the fact that people generally trust in

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<v Speaker 2>America's political and legal system, all of these trends are

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<v Speaker 2>now going in the opposite direction. Even in government macro circles.

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<v Speaker 2>It's recognized that we are in a period of de dollarization,

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<v Speaker 2>where for various reasons, tries want to diversify away from

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<v Speaker 2>the dollar, and while many central banks are buying gold

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<v Speaker 2>heart to store, heart to verify, hard to transact. So

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<v Speaker 2>this is where I think almost by the fault. Once

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<v Speaker 2>enough time has passed, more and more countries will say,

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<v Speaker 2>you know, this bitcoin thing is very easy to acquire,

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<v Speaker 2>very easy to transact, and we no longer have to

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<v Speaker 2>take the risk of some other countries' politicians liking us

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<v Speaker 2>doing the right thing, or some other countries central bank

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<v Speaker 2>not printing too much money, So you're.

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<v Speaker 3>No longer tied essentially to somebody else's monetary policy. Indeed,

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<v Speaker 3>that's freedom in and of itself, Yes, it is. The

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<v Speaker 3>academic discussion of what is bitcoin is a fascinating one,

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<v Speaker 3>and the value it has for governments that hold it

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<v Speaker 3>is important. But for institutional investors, the more important questions

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<v Speaker 3>are what does it behave like and what factors drive

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<v Speaker 3>chain and its value.

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<v Speaker 2>The question of how does the asset perform. This is

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<v Speaker 2>actually a homework assignment that I give to my students

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<v Speaker 2>every semester to go download the data and crunch the numbers.

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<v Speaker 2>And it's very interesting because bitcoin has gone through multiple

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<v Speaker 2>phases over the years where it behaves very differently in

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<v Speaker 2>relation to other assets. There was a period early on

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<v Speaker 2>where bitcoin was very much a flight to quality asset,

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<v Speaker 2>where in the event of a macro event or a

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<v Speaker 2>banking crisis like the one in Cyprus, the price of

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<v Speaker 2>bitcoin appreciated materially. Then many people will remember what happened

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<v Speaker 2>during COVID, which is that the price of bitcoin crashed

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<v Speaker 2>along with everything else. And then in the years after COVID,

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<v Speaker 2>the price of bitcoin sword along with everything else. So

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<v Speaker 2>I wouldn't read too much into any one of these cycles,

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<v Speaker 2>and for me personally, this is where I fall back

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<v Speaker 2>on my mental model of this idea of monetary insurance,

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<v Speaker 2>and the correlations have completely broken down now, so bitcoin

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<v Speaker 2>is not correlated with stocks right now, it's not correlated

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<v Speaker 2>with gold, which is unfortunate for the people who really

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<v Speaker 2>brought into the digital gold narrative. But I think this

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<v Speaker 2>is the beginning stages of it. This is purely speculative

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<v Speaker 2>of course, but I think it starting to behave more

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<v Speaker 2>like an asset that people want to own when they

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<v Speaker 2>are problems with more traditional assets.

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<v Speaker 3>That would mean that if everything feels a little crazy,

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<v Speaker 3>you actually do want to kind of have that insurance,

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<v Speaker 3>if you will.

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<v Speaker 2>But over intermedia to longer time horizons, markets can be

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<v Speaker 2>very noisy in the short term, but I do believe

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<v Speaker 2>that years into the future, when people look back on

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<v Speaker 2>the current period that we're living in now, the numbers

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<v Speaker 2>will actually start to show that if you move past

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<v Speaker 2>the most short term time horizons, bigcoin did start to

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<v Speaker 2>act more like an insurance asset. If you think there's

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<v Speaker 2>something to what I said about this idea of a

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<v Speaker 2>it's not digital goal, but it's new financial infrastructure, then now,

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<v Speaker 2>when it's fifty percent cheaper than it was not that

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<v Speaker 2>long ago, that's the time to start accumulating it. As

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<v Speaker 2>to how much one should accumulate, boring academic answer depends

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<v Speaker 2>on your risk profile and what else you hold in

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<v Speaker 2>your portfolio.

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<v Speaker 3>This is a great time to bring in my next guest,

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<v Speaker 3>Cosmo Jing. Cosmo is a general partner and portfolio manager

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<v Speaker 3>at Penta Capital, one of the oldest and largest institutional

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<v Speaker 3>investment firms focused on blockchain and digital assets. I've asked

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<v Speaker 3>them to come on the show because I want to

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<v Speaker 3>explore the impact of digital assets beyond Bitcoin in an

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<v Speaker 3>investor's portfolio and talk about Omed's last words, depends on

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<v Speaker 3>what else you hold in your portfolio, he said, So

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<v Speaker 3>how about it, Cosmo. What else can an institutional investor

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<v Speaker 3>hold other than bitcoin that gives them access to this

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<v Speaker 3>asset class.

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<v Speaker 4>When I think about diversification, I think about it as

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<v Speaker 4>not just about owning more things. It's about owning different

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<v Speaker 4>drivers of return. So you have different things contributing to

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<v Speaker 4>your portfolio.

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<v Speaker 1>You know.

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<v Speaker 4>From that perspective, it's like, why would I want to

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<v Speaker 4>own different drivers of return? Well, either because a they're

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<v Speaker 4>uncorrelated or be they offer something really compelling from a

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<v Speaker 4>growth perspective, And I think cryptoize elements of both. When

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<v Speaker 4>I do think of digital assets, I think about it

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<v Speaker 4>in two large buckets. There's there's bitcoin, and then there's

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<v Speaker 4>everything else, which is blocking the technology that's Ethereum, Salona,

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<v Speaker 4>all these other tokens, and the reality is they both

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<v Speaker 4>have pretty different drivers. Now there's cryptocurrencies and then there's

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<v Speaker 4>protocols that represent unit of value, and so cryptocurrencies are

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<v Speaker 4>kind of different. You need to put on your macro hat,

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<v Speaker 4>and there's not really any fundamentals to talk about fare it,

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<v Speaker 4>just like there aren't fundamentals for goal other than technical flows.

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<v Speaker 3>So what about the adjacent opportunities then, the businesses that

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<v Speaker 3>aren't crypto protocols or tokens but are actually connected to

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<v Speaker 3>the ecosystem. What do you think about those satellite or

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<v Speaker 3>adjacent investments? What do they look like then?

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<v Speaker 4>So, some of the things that we're most excited about,

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<v Speaker 4>and as we get beyond as you say, you know,

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<v Speaker 4>layer one protocols like Bitcoin, Salona, ethereum, are really a

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<v Speaker 4>lot of the applications that are now being built on

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<v Speaker 4>top of these base layers. So things like decentralized finance,

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<v Speaker 4>which is effectively recreating our financial rails except on blockchain rails,

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<v Speaker 4>we find that extremely exciting. As we move beyond DeFi,

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<v Speaker 4>there's a lot of other surface areas that we think

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<v Speaker 4>are really interesting. Explore one area in particular that I'm

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<v Speaker 4>spending a lot of time in that pintera spending a

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<v Speaker 4>lot of time made is all the way that block

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<v Speaker 4>really uniquely enables AI adoption. There are so many interesting

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<v Speaker 4>entrepreneurs that actually sit at that intersection of blockchain and AI,

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<v Speaker 4>because you know, blockchain ani are booth just branches of math.

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<v Speaker 4>I studied math in college. Plenty of my smarter colleagues

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<v Speaker 4>went on to study math and PhD. They all have

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<v Speaker 4>both cryptography experience or blockchain experience and statistic experience or

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<v Speaker 4>AI experience, and so there's already this huge supply of

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<v Speaker 4>entrepreneurs that sit at that intersection and really interesting explore that.

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<v Speaker 4>So my background is also as a long short equity

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<v Speaker 4>investor for most of my career, and so I come

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<v Speaker 4>from a world where I care deeply about fundamental value,

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<v Speaker 4>about revenue, about evadah, about cash flows, and my whole

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<v Speaker 4>raison detro for entering the digital asset space. I started

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<v Speaker 4>to see that more and more protocols actually had those

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<v Speaker 4>characteristics and were able to be underwritten in the same

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<v Speaker 4>exact way that I underwrote equities, and my goal was

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<v Speaker 4>to bring that fundamental financial analysis rigger into the block

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<v Speaker 4>chain space. When you look at blockchain protocols, these can

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<v Speaker 4>be analyzed and should be analyzed in the same exact

0:14:06.440 --> 0:14:09.520
<v Speaker 4>way that you might analyze inequity with any any equity company,

0:14:09.520 --> 0:14:11.080
<v Speaker 4>you might think about, you know, what if they're total

0:14:11.160 --> 0:14:14.520
<v Speaker 4>addressable market, what are the users? How will they monetize

0:14:14.520 --> 0:14:16.959
<v Speaker 4>their users? And then what's the expense structure to get

0:14:16.960 --> 0:14:20.360
<v Speaker 4>to your your earning's power. Similarly, with a blockchain protocol,

0:14:21.040 --> 0:14:22.960
<v Speaker 4>you know you have this, you have this incredible ability

0:14:23.000 --> 0:14:25.400
<v Speaker 4>to use on chain a data to measure a lot

0:14:25.440 --> 0:14:28.120
<v Speaker 4>of those same things. You can see how many users

0:14:28.360 --> 0:14:31.240
<v Speaker 4>any given protocol has. You can see on the blockchain

0:14:31.280 --> 0:14:33.960
<v Speaker 4>it's revenue getting printed second by second, and so you

0:14:34.000 --> 0:14:36.840
<v Speaker 4>can track that revenue and then you can, you know,

0:14:36.920 --> 0:14:39.040
<v Speaker 4>you get a sense of what the operating expense structure

0:14:39.120 --> 0:14:42.160
<v Speaker 4>might be and then how much cash lovelight get produced

0:14:42.240 --> 0:14:46.160
<v Speaker 4>or return to token holders. It happens that most protocols,

0:14:46.200 --> 0:14:49.320
<v Speaker 4>because they are new businesses and new startups, have less

0:14:49.320 --> 0:14:51.960
<v Speaker 4>of a track, ord less history, less data to use.

0:14:52.040 --> 0:14:54.000
<v Speaker 4>But you can dream the dream and if there's that

0:14:54.080 --> 0:14:56.360
<v Speaker 4>same you know, and so there's a wider range of outcomes,

0:14:56.480 --> 0:14:58.520
<v Speaker 4>but you can still do that same sort of analysis.

0:14:58.840 --> 0:15:01.600
<v Speaker 4>So this surprises many our perspective investors when we talk

0:15:01.680 --> 0:15:04.000
<v Speaker 4>to them. But for all of our positions, we have

0:15:04.080 --> 0:15:06.520
<v Speaker 4>three statement models. Right, we build out income statements, We

0:15:06.560 --> 0:15:08.880
<v Speaker 4>build cash flow statements, we bail out balance sheets to

0:15:08.960 --> 0:15:11.680
<v Speaker 4>understand the fundamental growth of this business.

0:15:12.200 --> 0:15:16.240
<v Speaker 3>Cosmo, is there a point we're not having any digital

0:15:16.280 --> 0:15:20.360
<v Speaker 3>asset exposure actually becomes a risk for institutional portfolios.

0:15:21.160 --> 0:15:24.400
<v Speaker 4>I think the answer is very much yes, and that is,

0:15:24.560 --> 0:15:26.560
<v Speaker 4>you know, a driver of some of the interests that

0:15:26.600 --> 0:15:30.360
<v Speaker 4>we're seeing from clients, because if you think about what

0:15:30.400 --> 0:15:33.120
<v Speaker 4>happened last year, not only did it became clear that

0:15:33.280 --> 0:15:38.560
<v Speaker 4>thereas regulatory clarity, that the governments are supportive, that access

0:15:38.640 --> 0:15:42.280
<v Speaker 4>was improving, but also that you know, quietly Coinbase was

0:15:42.280 --> 0:15:44.080
<v Speaker 4>added to the S and P five hundred in the

0:15:44.080 --> 0:15:46.680
<v Speaker 4>second quarter of last year. And what that does is,

0:15:47.680 --> 0:15:51.440
<v Speaker 4>all of a sudden, every single every single professional investor

0:15:51.560 --> 0:15:56.200
<v Speaker 4>now has Blockshain exposure in their benchmark. Right nearly everyone

0:15:56.240 --> 0:15:58.160
<v Speaker 4>in the world uses some version of the SMP five

0:15:58.240 --> 0:16:03.920
<v Speaker 4>hundred or maybe it's MSCI to benchmark their returns. And truly,

0:16:04.040 --> 0:16:06.120
<v Speaker 4>prior to prior to Coinbase being added to the S

0:16:06.160 --> 0:16:09.840
<v Speaker 4>and P five hundred, you had zero blockchain in your index.

0:16:09.920 --> 0:16:12.120
<v Speaker 4>And so if you were, if you're a manager of

0:16:12.440 --> 0:16:14.480
<v Speaker 4>thinking about where you want to be overweight or underway,

0:16:14.840 --> 0:16:16.440
<v Speaker 4>it was never a consideration for you, but all of

0:16:16.440 --> 0:16:19.240
<v Speaker 4>a sudden, starting last year, you are now required to

0:16:19.280 --> 0:16:22.160
<v Speaker 4>think about whether you are overweight, underweight, or equoi to

0:16:22.240 --> 0:16:25.080
<v Speaker 4>asset class. And so that is a major shift and

0:16:25.120 --> 0:16:28.120
<v Speaker 4>a major change. So it does become risky to not

0:16:28.280 --> 0:16:31.280
<v Speaker 4>have access to this assat class now that is actually

0:16:31.280 --> 0:16:33.560
<v Speaker 4>in your benchmark and how you're judged against. And because

0:16:33.600 --> 0:16:35.920
<v Speaker 4>that happens to be outperforming everything else.

0:16:36.600 --> 0:16:39.120
<v Speaker 3>Okay, then is there a point where it's going to

0:16:39.160 --> 0:16:41.680
<v Speaker 3>be too expensive to get into this asset class?

0:16:42.400 --> 0:16:45.520
<v Speaker 4>We get that question a lot, and I think it's

0:16:45.520 --> 0:16:47.640
<v Speaker 4>really important here to have a long term time prize.

0:16:47.680 --> 0:16:49.800
<v Speaker 4>And if you're an investor, the most important thing that

0:16:49.920 --> 0:16:52.400
<v Speaker 4>every marketing department cares about if you run a consumer

0:16:52.440 --> 0:16:54.800
<v Speaker 4>brand is what are the twenty to thirty year olds doing?

0:16:55.120 --> 0:16:58.840
<v Speaker 4>Because you know inevitably that they will get jobs get

0:16:58.880 --> 0:17:02.440
<v Speaker 4>more wealthy over time, and so their portfolio allocation or

0:17:02.440 --> 0:17:05.160
<v Speaker 4>what they spend on what they believe in that will

0:17:05.200 --> 0:17:08.000
<v Speaker 4>those brands will have more value over time because those

0:17:08.040 --> 0:17:11.000
<v Speaker 4>consumers will have more money over time, and they'll replace

0:17:11.080 --> 0:17:14.800
<v Speaker 4>the older coalhorts that age out over time. And you

0:17:14.880 --> 0:17:17.359
<v Speaker 4>know today a lot of fifty to sixty year olds,

0:17:17.400 --> 0:17:19.320
<v Speaker 4>the people with all the wealth have a lot of gold,

0:17:19.840 --> 0:17:21.280
<v Speaker 4>but if you only have the twenty three year olds,

0:17:21.400 --> 0:17:23.280
<v Speaker 4>they all own bitcoin, they don't own gold, And so

0:17:23.560 --> 0:17:25.919
<v Speaker 4>very clear to me over a multi decade time period

0:17:26.200 --> 0:17:28.920
<v Speaker 4>that brand bitcoin is going to win out. And bitcoin

0:17:28.960 --> 0:17:31.480
<v Speaker 4>today is a two trillion dollar market, cab gold is

0:17:31.520 --> 0:17:34.359
<v Speaker 4>something like thirty five trillion, So this for real, you know,

0:17:34.640 --> 0:17:38.240
<v Speaker 4>ten to twenty x opportunity and that is tremendous upside.

0:17:38.320 --> 0:17:40.480
<v Speaker 4>And then from the blockchain technology, I mean I feel

0:17:40.480 --> 0:17:43.720
<v Speaker 4>even more optimistic. It's more excited about the about the

0:17:43.800 --> 0:17:45.160
<v Speaker 4>return potential.

0:17:48.560 --> 0:17:52.720
<v Speaker 3>For institutional investors. Building diversity in a portfolio is all

0:17:52.760 --> 0:17:56.760
<v Speaker 3>about collecting assets that respond to different drivers. Oh Mead

0:17:56.840 --> 0:18:00.320
<v Speaker 3>Malla can seize bitcoin as both a payment system and

0:18:00.359 --> 0:18:03.480
<v Speaker 3>a hard currency. He says its role in a portfolio

0:18:03.560 --> 0:18:07.840
<v Speaker 3>is to serve as insurance against investments that have different

0:18:07.880 --> 0:18:14.119
<v Speaker 3>behavior patterns and protection from monetary debasement. Cosmo Jiang, meanwhile,

0:18:14.280 --> 0:18:17.359
<v Speaker 3>is attracted to the growth potential of digital assets and

0:18:17.400 --> 0:18:22.240
<v Speaker 3>protocols that push investors beyond Bitcoin. What I found interesting

0:18:22.440 --> 0:18:25.280
<v Speaker 3>was the way he explained his approach to evaluating those

0:18:25.320 --> 0:18:29.119
<v Speaker 3>assets and how it mirrors the approach commonly used to

0:18:29.119 --> 0:18:32.159
<v Speaker 3>put a price on traditional equity opportunities. So I'm going

0:18:32.240 --> 0:18:34.240
<v Speaker 3>to give the last word to Cosmo because I want

0:18:34.280 --> 0:18:37.440
<v Speaker 3>him to weigh in on the hottest topic in investing

0:18:37.640 --> 0:18:43.919
<v Speaker 3>right now, artificial intelligence. Are institutional investors over investing in

0:18:43.960 --> 0:18:47.639
<v Speaker 3>AI tech and AI focused companies and what does that

0:18:47.760 --> 0:18:49.679
<v Speaker 3>mean for crypto related investments.

0:18:50.560 --> 0:18:52.719
<v Speaker 4>Your goal as an investor should be trying to capture

0:18:52.800 --> 0:18:57.000
<v Speaker 4>the total universe of potential growth opportunities. And it's pretty

0:18:57.000 --> 0:18:59.800
<v Speaker 4>clear that today a lot of the equity indices over

0:19:00.040 --> 0:19:02.199
<v Speaker 4>index to AI, and you know, that could be for

0:19:02.240 --> 0:19:04.480
<v Speaker 4>a good reason and not. I certainly think AI is

0:19:04.480 --> 0:19:07.720
<v Speaker 4>going to grow tremendously over time, but they probably under

0:19:07.760 --> 0:19:10.840
<v Speaker 4>inext to the next most disruptive technology today, which is blockchain.

0:19:11.160 --> 0:19:13.080
<v Speaker 4>You know, everyone is making this big deal about whether

0:19:13.080 --> 0:19:15.080
<v Speaker 4>I should be able to send in blockchain assets or not.

0:19:15.680 --> 0:19:18.280
<v Speaker 4>You know, blockchain. In the future, all of finance will

0:19:18.280 --> 0:19:21.520
<v Speaker 4>be digital finance, All of finance will include crop blockchain assets.

0:19:21.760 --> 0:19:25.000
<v Speaker 4>Many other businesses, including large AI companies, will be using blockchain,

0:19:25.240 --> 0:19:27.639
<v Speaker 4>and so it'll just become part of our everyday allocation,

0:19:28.080 --> 0:19:30.800
<v Speaker 4>whether that's through investing in blockchain focused companies or other

0:19:30.880 --> 0:19:34.920
<v Speaker 4>companies that happen to use blockchain, across equities, across tokens

0:19:35.040 --> 0:19:36.000
<v Speaker 4>or cross currencies.

0:19:45.240 --> 0:19:47.879
<v Speaker 3>I m amede LAO and This is Evolving Money, a

0:19:47.960 --> 0:19:52.680
<v Speaker 3>co production between Coinbase and Bloomberg Media Studios. Thanks for listening.

0:19:52.800 --> 0:19:54.320
<v Speaker 3>Be sure to follow the show on your app of

0:19:54.400 --> 0:19:56.560
<v Speaker 3>choice so you'll always be in the loop when we

0:19:56.680 --> 0:20:01.000
<v Speaker 3>post a new episode tender